“The government is introducing a Carbon Border Adjustment Mechanism (CBAM) from 1 January 2027. It will ensure that highly traded, carbon-intensive goods imported into the UK face a carbon price comparable to the price that would be paid were the goods produced in the UK.”

Where it stands

The Carbon Border Adjustment Mechanism (CBAM) puts a carbon price on highly traded, carbon-intensive goods imported into the UK; the Finance Act 2026 provides its legal framework and two sets of regulations have been laid. The statement publishes illustrative rates for the first quarter of 2027 and the default emissions values for 2027 and 2028, commits to country-specific default values from 2029, and says the official first-quarter rates will be published before the end of the calendar year. The card moves to delivering when the mechanism starts on 1 January 2027.

What has happened

1. Oct 2026The Financial Secretary to the Treasury says the government is introducing a Carbon Border Adjustment Mechanism from 1 January 2027, Promised
2. Oct 2026The statement records that the Finance Act 2026, which provides the mechanism's legal framework, has Royal Assent, and that two sets of CBAM regulations have been laid, Legislated evidence
3. Jan 2027The Carbon Border Adjustment Mechanism due to start on 1 January 2027, Deadline

About the cost

The statement gives no figure for what the mechanism will raise or cost.

More detail

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